Fortress Affiliate Sued Over $250M Loan Portfolio Foreclosure

Law360, New York (October 10, 2012, 8:31 PM EDT) -- A national group of commercial property owners and their guarantor, KBS Acquisition LLC, filed a lawsuit Tuesday in New York alleging a Fortress Investment Group LLC affiliate holding a $250 million loan for the properties wrongly refused the owners’ efforts to sell before starting foreclosure actions.

The plaintiffs argue that CF Branch LLC is trying to foreclose their entire portfolio of properties, instead of foreclosing individual units, in a bid to discourage potential purchasers and ultimately end up with the properties.

CF Branch’s sale “is a...
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